Purpose

The study intends to determine the environment, social and governance (ESG)'s impact on the firm's value. In addition, how ownership concentration (OC) and transparency and disclosures (TD) influence the impact of firm's ESG on its valuation (firm value).

Design/methodology/approach

The relevant panel data with a sample of 78 Indian firms for five years (2016–2020) are gathered. Both linear and nonlinear connections of firm's ESG with its value are tested. In addition, TD and two components of OC (stakes of promoters and institutional investors) are empirically tested as moderators on the connectivity of the firm's ESG with its value.

Findings

The linear association of firm's ESG with its value is found insignificant. ESG is found to have a positive and nonlinear (U-shaped) impact on the value of the firms. TD does not moderate the connectivity of firm's ESG with its valuation (firm value). The higher stakes of promoters positively affect the association of firm's ESG with the valuation. However, the high stakes of institutional investors retard the ESG's influence on the firm value.

Research limitations/implications

The study is on Indian firms for five years. A sample of more than one nation and a longer duration (10 years) could have helped better determine the associations among the variables. In turn, these limitations can be the present study's future scope. In addition, the authors find a lack of standardisation of the ESG scales, which is a problem in measuring it. Using standardisation scales of ESG for the analysis can also be future scope on the topic.

Practical implications

The investors would be wary of the level of ESG to influence the firms' value positively. Managers also need to be careful to have sincere efforts for ESG to reap its rich dividends. Policymakers may take cognisance that despite having board seats (in a few cases), institutional investors negatively (instead of positively as expected) influences the ESG's association with the firm's value. They may bring some guidelines or legislative changes to fix responsibility on the part of the institutional investors.

Originality/value

No study reports the linear and nonlinear association of ESG on the firm's value to observe clearer connectivity between the two. Similarly, no study is observed to have promoters and institutional investors as moderators on the association of firm's ESG with the valuation (firm value). Hence, the present study considerably augments the extant literature on the topic and its contribution.

中文翻译：

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公司价值和 ESG：所有权集中度和公司披露的调节作用

目的

该研究旨在确定环境、社会和治理（ESG）对公司价值的影响。此外，所有权集中度 (OC) 以及透明度和披露 (TD) 如何影响公司 ESG 对其估值（公司价值）的影响。

设计/方法论/途径

收集了 78 家印度企业五年（2016-2020 年）样本的相关面板数据。公司 ESG 与其价值的线性和非线性联系都经过测试。此外，TD 和 OC 的两个组成部分（发起人和机构投资者的股份）作为公司 ESG 与其价值的连通性的调节因素进行了实证检验。

发现

公司的 ESG 与其价值的线性关联并不显着。研究发现，ESG 对公司价值具有积极且非线性（U 形）的影响。TD 不会调节公司 ESG 与其估值（公司价值）的关联性。发起人持股比例越高，对公司 ESG 与估值的关联性产生积极影响。然而，机构投资者的高风险阻碍了ESG对公司价值的影响。

研究局限性/影响

该研究针对印度公司进行了五年。多个国家和较长持续时间（10 年）的样本可能有助于更好地确定变量之间的关联。反过来，这些局限性可能是本研究未来的范围。此外，作者发现ESG量表缺乏标准化，这也是衡量它的一个问题。使用 ESG 标准化量表进行分析也可能是该主题的未来范围。

实际影响

投资者会对 ESG 水平对公司价值产生积极影响持谨慎态度。管理者也需要谨慎，真诚地努力让ESG获得丰厚的红利。政策制定者可能会认识到，尽管机构投资者拥有董事会席位（在少数情况下），但机构投资者会对 ESG 与公司价值的关联产生负面影响（而不是像预期的积极影响）。他们可能会提出一些指导方针或立法变更，以明确机构投资者的责任。

原创性/价值

没有研究报告 ESG 与公司价值之间的线性和非线性关联，以观察两者之间更清晰的联系。同样，没有研究表明发起人和机构投资者作为公司 ESG 与估值（公司价值）关联的调节者。因此，本研究大大丰富了有关该主题及其贡献的现有文献。